Economics: Policy Advising to Nigeria - Research Paper Example

29th March Economics: Policy advising to Nigeria Despite being released from the control of the Western countries during the era of colonization, most African countries have been faced with lack of adequate laws to curb illegal social movements and solve interior problems including fighting for resources such as oil and islands. As the result of unemployment on the other hand as well as the impact of terrorist related groups, there have emerged illegal movements for example the Boko Haram. This paper seeks to discuss policy that Nigeria should adopt to curb oil and Boko Haram problems in the country. Background history Federal Republic of Nigeria is a federal country that is located in West Africa. With a population of approximately 175 million people, the country obtained its independence from the UK government in 1960 and became a republic in 1963. Based on its large population, Nigeria accounts for approximately 18% of the Africa population. 52% of the population resides in the rural area while the rest 48% are in urban areas. As the result of high fertility rates and increased population growth rates, Nigeria has experienced high population in the last 60 years. As the result of the stiff competition for resources in Nigeria, the living condition and health care are in poor condition. The country life expectancy stands at 52 years. As compared to other African countries, Nigeria has lower rate of HIV/AIDS spread. Nigeria is ruled by the president who is elected by a popular vote to rule for a period of 4 years. According to the country constitution, the powers of the president are checked by the House of Representatives and Senate. In order to ensure that the country large population is effectively administered, the country constitution allows for three major systems of law. The first one is common law. This was the law that originated from the colonial government but underwent changes after the country became independence. The second one is the customary law that is originates from the traditional practices. Thirdly is the Sharia law that is mostly used in the Northern Nigeria by the Muslims. According to a report by World Bank, Nigeria has already reached the middle income level based on its wide range of resources. As the result of the abundant supply of oil products among other natural resources, the economy of the country has significantly improved as compared with other African countries. The country Gross Domestic Growth (GDP) stands at $523 billion putting the country at position thirty in the world in terms of GDP growth and position and number two in Africa after South Africa. In the year 2014, Nigeria per capita income is estimated to be $3,002 (Pearson 14). As the result of government investment in the education sector, Nigeria has more than 100 public universities with Obafemi Awolowo University being among the best institution of higher learning. The government provides free education even though school attendance is not compulsory. The first stage consists of six years primary education followed by 3 years junior secondary level, 3 years of senior secondary level and lastly four years university education. As the result of the establishment of large number of primary schools, the country has continued to experience a reduction in the literacy level. Males who attend the secondary stands at 32% while their female counterpart stands at 27%. Despite the resources that Nigeria possesses, public transport is one of the major factors that hinder sustainable economic growth. Due to the poor status of the 80,500 kilometers of road, states governments have been using a lot of funds in repairing the roads in order to ensure effective transportation of agricultural products as well as easier movement of people. Major airport in Nigeria are Enugu, Abuja, Kano, Lagos and Port Harcourt. As the result of the large volumes of oil that the country produces, there has been an environmental concern in Nigeria. For example, within the region of Nigeria Delta, oils spills have resulted to environmental degradation and increased carbon emissions (Raymond 18). Additionally, the increase in population especially in Lagos is a major cause of environmental problems. The increased population has also contributed to high demand for wood and construction materials making the country to be one the nations with the highest rate of deforestation in the world according to Food and Agriculture Organization (FA0). Despite the high level of skilled human resources in Nigeria, the country has large number of criminal groups who are mostly engaged in drug trafficking and political violence. The network of corruption activities does not only involve the cults in the universities and the criminal groups but also the politicians and officers in the treasury. Being at position 143 in the corruption perceptions index, the country experiences huge loss of public funds. For example, between 1960 and 2000, more than $420 billion was stolen from treasury by the government officers and leaders. Significant percentage of human capital in Nigeria is civil servants. With a labor force of more that 58 million, the government incurs large amount of revenue to pay wages even though the minimum wage remains low an aspect that has caused major strikes led by Nigeria Labor Congress. Problems in Nigeria Oil problem Not withstanding that Nigeria has expansive oil resources, the country faces many challenges in the oil industry. Niger Delta has attracted the attention of many individuals and groups globally. For example, human right activists, fair trade advocates and environmentalists have indicated their concern on the activities in the Niger Delta. Some of the major happenings that have attracted the attention of the groups include the activities of the oil companies including Shell, Agip, Mobil, and Chevron, the hanging of Ken Saro-Wiwa and non-violent protests by the Ogoni people (Baird 63). While the Ogoni people who have been highly affected by the environmental and human right violation focus at improving the conditions, Nigeria government has engaged in a series of repressive activities (Human Rights Report 3). Similarly, oil companies who fight for the oil have not only resulted to the deaths of innocent members of the public but also high level of poverty and environmental degradation (Anthonio and Isoun 37). In their efforts to express their concern, the Ogoni people among other residents have regularly engaged in peaceful protesting. However, through the use of military, police and oil companies, the government has been involved in cracking down the protestors in a harsh way. According to Essential Action and Global exchange, oil problem in Nigeria is depicted in four major issues. First, oil companies in Niger Delta threaten the livelihood of the communities living nearby. For example, the oil-generated pollution has not only affected the farming activities in the neighborhood resulting to malnourishment, but also it has negatively affected the fishing sector. Diseases are also common in the region. Secondly, multinational companies have negatively impacted on the society and local economy. This is indicated by price inflation, loss of property, irresponsible parenting as well as prostitution (Boele et al, 39). Thirdly, the military and the oil companies have been used by the government to repress protests by the affected members of the community resulting to high number of deaths and injuries. Fourthly, the media faces difficulties in reporting the situation. This is based on the fact that there exist legal and physical constraints that do not allow for free movement as well as circulation of information (Isumonah 20). Based on their impact on the oil industry, the big oil companies have continuously acted as destabilizing forces that incites one community against the other in their efforts to control the sector and reap huge profit. Despite being a country that is globally recognized due to its high production of crude oil which it exports to countries such as India, US and South Africa, Nigeria is a big importer of oil due to poor oil policies. For example, in 2011 the country spent $7.6bn to import 8.1 million metric tons. Ironically, Nigeria imports petroleum products from non-oil producing states as well as those that are faced with political conflicts. Nigeria leaders who refer the oil as the national cake have been known to struggle to get a chunk of the income from the oil. High oil imports have not only affected the oil sector but also they have negatively affected the banking sector calling for the current reforms by the government. Problem of Boko Haram Another major problem that faces Nigeria is the impact of Boko Haram. This is an Islamic militant group that is based in Northern Nigeria. Having been established by Mohammed Yusuf in 2002, the terrorist group is involved in various illegal activities. For instance, in 2013, Boko Haram attacked an agricultural college during the night and killed dozens of students and injuring many more others (Mark 12). According to the group leader, Abubakar Shekau his group intention is to end democracy in the country and only allow education in Muslims schools. The activities of Boko Haram poses extensive security challenge in Nigeria an aspect that has made the country to use a lot of resources in its effort to curb the group (Ray 29). Having killed more than 1,700 people since 2010, the group uses double-cabin vehicles, motor cycles and military uniforms during its attacks. Policy advising and how to improve the existing problems One of the major strategies that the Nigeria government should undertake is to pass legislations that will control the activities of oil companies in the Niger Delta region. By strictly monitoring their activities and safeguarding the rights of the local community, President Goodluck Jonathan’s government will ensure that problems faced in the oil sector are effectively addressed. Additionally, the government through the use of countries that do not have oil interest in Nigeria should undertake an investigation on the operations of the oil companies that seem to propagate conflicts among the communities. Globally, environmental destruction has become a major concern. Thus, environmental improvements are needed to be adopted in the areas neighboring Niger Della (Human Rights Report 3). This implies that the government should allocate more financial resources to cater for research and come up with strategies to curb carbon emissions and solve the farming and fishing problems (Anup 9). A truth, justice and reconciliation commission should also be formed by the government. Such commission should deal with past oppressors and oil companies that have caused suffering of the innocent protestors. Based on the importance of the oil in the economy of countries, Nigeria government should emulate good leadership of the sector by ensuring that companies that do not follow the outlined regulations and up hold sustainable corporate social responsibilities are fined. As the activities of Boko Haram continue to cause havoc and death in churches and learning institutions, there is need for the government to deal with the group in an amicable way. One of the ways of addressing the group activities is by establishing a civilian movement whose role will be to collect intelligence report that will assist the military and the police to deal with the problem (David 78). Based on the fact that most of the attacks by the group occurs without the knowledge on the victims, it is essential that more security personnel are employed to guard public places such as churches, shopping malls, colleges and the universities (Osita 39). Formation of community peace council is another policy that the government can employ. Such council will be responsible for creating an avenue through which members of the society can give their grievances. In this way, the government will avoid emergence of illegal groups that aims at controlling the oil industry. Nigeria government should also seek the assistance of military personnel, detectives and antiterrorist police force from developed countries such as US as well as other African states to fight the group (Carter 47). Conclusion Based on the above discussion, it is clear that Nigeria has a lot of resources that contributes to the country’s GDP. However, the country high population has resulted to stiff competition for resources thus leading to emergence of political and social problems. Two major issues that Nigeria face includes oil problem and Boko Haram. This implies that for the government to maintain a sustainable economic growth there is need to implement the policies of truth, justice and reconciliation commission, security improvement and community peace council among others as a way addressing the two problems. Woks Cited Anthonio, O. and Isoun, M. Nigerian Cookbook. Lagos: Macmillan, 1982. Print. Anup, S. Nigeria and Oil. Available from http://www.globalissues.org/article/86/nigeria-and-oil. Retrieved 26 March 2014. Baird, J. Oils Shame in Africa. London: Sage, 2010. Print. Boele, R., Fabig, H., Wheeler, D. Shell, Nigeria and the Ogoni: A Study in Unsustainable Development. Sustainable Development, 9, 74–86, 2001. Print. Carter, P. U.S. Department of State. 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Petroleum and the Nigerian Economy. Stanford: Stanford University Press, 2009.Print. Ray, C. Aladura Christianity: A Yoruba Religion. Journal of Religion in Africa 23: 266–291, 1993. Print. Raymond, R. Shell and Ogoni People oil pollution in the Niger Delta. Lagos: Macmillan, 2013. Print. Read More